Search This Blog

Qualcomm has rejected Broadcom's offer to merge for $ 103 billion

In early November, the network reported that Broadcom made an unprecedented proposal to merge the American manufacturer of mobile hardware Qualcomm. The deal could amount to $ 103 billion ($ 70 per share with the current market value of $ 64.57) and debt coverage of $ 25 billion, but the company refused this idea. Official statement Qualcomm says that the proposal was rejected unanimously because of "underestimation of the company's leading position in the field of mobile technology and the prospects for growth in the future." Qualcomm also emphasizes continued growth in attractive market segments and is one of the leaders in the implementation of 5G. In addition, the management of Qualcomm doubts that such a transaction will be approved by the regulatory authorities.

At the same time, according to the media, Broadcom is ready to increase its offer and is determined resolutely, but when the next steps are taken, it is still unknown. Well, Qualcomm allegedly does not plan to resist particularly. As experts note, the problems of the American manufacturer began with the conflict Apple. Recall, Apple does not want to pay for "basic mobile technology," while Qualcomm insists on its patent rights and requires the prohibition of sales of the iPhone and iPad in some major regions, including the US and China. Despite a public willingness to compromise with Apple, Qualcomm shares fell, and decided to use Broadcom.